Free The Eminent Domain Revolt books for everybody. Just send the books (including postage) to everybody for free.

Igor says “sad” again

Free houses, free medical, free vehicles and free everything. No one has to work and and everybody gets everything. I do not think so.

Igor is right “sad”

Then maybe you will understand, when I ask you: what, in fact, is property. We know so little about what, in fact, is property, that the notion of “rights” in property seems to be what the ignorant come up with in order to disguise the fact that they don’t know what property is.

You are very, VERY ignorant. Scary.

I’ll admit, I had to read your post 3 times before I responded. You seem to skip around to a lot of topics quickly. Some say that genius is hard to understand, but unfortunately they say the same thing about insanity.

Anywho…

You lost me with that point about banning housing evictions. Sounds like some freeman garbage that someone pulled out of the dustbin of the 70s and dusted off for the new housing bubble crash. A bunch of absolute rubbish if you ask me; property rights are the backbone of a prosperous free society. Once you start usurping property rights, you create a feudalistic society without access to recourse or civil liberties. If a bank can be stripped of its right to repo a house it legally owns, you strip all people of all rights related to property. That’s not a place I want to live. I guarantee you that if it comes to that, you’ll have 300Million fewer people living in your country.

I’m just sayin.

The point? The point is that Treasuries are NOT the point. They are a charm on the bracelet of the powerful, a bauble, a knicknack. A thing of naught. Nothing. Poof!

So what’s the real story? Here is the real story, and it’s something I’ve been telling you for a LONG time now. But I get ignored.

Here’s the story, and my comment under it. This is really what is going on:

The Fed contracts

Susan Woodward and Robert Hall | Feb 6, 2009

The Fed has indicated that it plans to pursue a policy of quantitative easing, that is, expanding its portfolio by borrowing in financial markets at low rates and investing the proceeds in higher-yielding private investments. The Fed’s acquisition of large amounts of Fannie and Freddie’s debt was a notable success of that strategy, as it lowered their borrowing rates and thus lowered mortgage rates. But, as the graph below shows, the Fed has engaged in quantitative tightening over the past month, reducing its borrowing and reducing its holdings of higher-yielding investments. The line labed “Other assets” measures that type of investment. So far, no explanation for the Fed’s announcements of moving in an expansionary direction while actually contracting.

Originally published at Woodward & Hall weblog

My comment (on this story at Roubini–who himself is a little silly quasifascist corrupt dog):

I told you many months ago what is going on: Andrew Mellon’s “liquidate liquidate liquidate.” But no one paid any attention and I was booted off the site. Still interested in knowing the truth? Then read West Coast Hotel v. Parrish (1937). That never repealed “liquidate liquidate liquidate.” Which means that as the economy weakens, the Federal Government–responding to the powerful–WITHDRAWS FROM THE SOCIETY.

Several generations of idiots–weaned on the idea that when the economy WEAKENS the government INTERVENES–have gotten into their retarded heads the idea that the Federal Government has some sort of “commitment” to the society, and that this is somewhere “mandated.”

Silly, stupid, corrupt, mixed up people. Prepare for General MacArthur on his white house, and Obamavilles on the mall.

We will have a revolution. And guess what will happen at the end of it? We will have the new maintenance regime in power and we will do what I have been advocating for the last three years:

BAN HOUSING EVICTIONS.

Just read my wonderful book, The Eminent Domain Revolt.

John Ryskamp

What you’re telling me is that we’ve got to the point where they have to use actual force and naked deceit mostly, instead of subtle deceit combined threat-of-force combined with occasional force for terror purposes. You know as well as I do that that will work for about 30 years, and then the final decline begins. Sounds about right

Give it up. Only when the U.S. collapses completely will there cease to be a market for Treasuries–and then that will be because everything else has collapsed.

And also remember this: there is nothing in the Constitution which says that the Administration can’t simply enter on the books as “paid in,” amounts it is authorized by Congress to borrow. Then it can borrow at its leisure. And by “leisure” I mean that it could probably take five years to do the actually borrowing (Congress can’t “legislate from the grave,” the Surpreme Court has ruled, but it CAN enact laws which come into effect as far as five years into the future).

Didn’t know that, did you? There are MANY ways the power structure in this country, has to make the Federal Government keep it in power; it has many tricks up its sleeve you don’t know about.

You’re saying, it will matter once there is nothing up that sleeve. Wrong. It will matter when there is no sleeve.

An important quote occurs just after the passage you cite:

… In addition, government owned, controlled or financially backed companies, worldwide, must roll over hundreds of billions of dollars in existing debt in the next 24 months. …

Rollover is the official, big-time, equivalent of simple cheque kiting and is no more sustainable than the ABCP, SIV, etc. parts of the classic private credit crunch that governments are now trying to bail out.

The bottom line is that Justice Mahoney was dead right in December 1968 with what is known among internet conspiracy theorists as “The Credit River Decision.”

Nobody sings “Once to Every Man and Nation” in church anymore, but maybe we should all read the thing now. It’s becoming clear that the Moment of Truth in the present story arc was when Johnson refused to admit the unaffordability of Vietnam and covered up his economic failure by selling off Fannie Mae. Credit River almost certainly never came to the attention of then-President-elect Nixon, and he made things worse by creating Freddie a couple of years later. James Russell Lowell was protesting the Mexican-American War, but his argument mapped well into the 1960s, where it was ignored just as thoroughly (what’s funny is that at the same time exposure to Amy’s poetry was having a decisive influence on my own path).

Governments can fight against the tide all they want, but K-Winter demands a reboot of the money system over the next couple of years before the recovery starts.

… and yes, that was a sobering read.

There is more interest in this story, and more concern that this could end badly:

In recent months there has been a flight to US government debt, both notes and bonds as people and institutions seek financial safety. This flight has bid up the price of Treasuries beyond levels justified by market facts or experience. Treasuries are in a bubble. Bubbles do not endure. Painful bear markets always follow. As long as the majority of investors think Treasuries are the safest of havens, Treasuries will be in a bubble. When the majority view changes, which will happen with no notice and abruptly, the Treasuries bubble will deflate quite rapidly.

There is no modern precedent for the amount of debt governments—local, state, national and supranational (the IMF is considering its first bond issue)—are planning to issue in the next 12 to 18 months. There is no modern experience with such a dramatic inflation in public debt, globally. The US government alone plans to issue over $2trillion in bonds and notes. Other governments, chiefly EU members, expect to issue another $1trillion in debt.

I thought the rest of this "Seeking Alpha" article was a good read, if a bit sobering.